A methodology for the economic comparison of X¯, cumulative sum, and geometric moving-average control charts

Abstract

The design of control charts with respect to economic criteria has been a subject of considerable study. Several different process models have been developed and applied to individual control charts. This paper compares three types of control - X¯, Cumulative Sum, and Geometric Moving Average - using profit as the evaluation criterion. A simulation-based analysis is used to model the control chart functions, and the interrelationships between the type of control chart, sample size, sampling interval and magnitude of shift in the process mean are investigated.